Ford Fuels Environmental Change In The Midwest

New Ethanol Corridor Gives Consumers Green Fuel Alternative

Los Angeles – March 8, 2006: When Ford Motor Company needed an alternative fuel source to help power its ongoing commitment to vehicles that run on clean and renewable energy, it turned to an unlikely source: America’s farmland.

Specifically, Ford began rolling out vehicles powered by E85 ethanol, a completely renewable fuel that is most commonly made from corn. The automaker recently announced the beginnings of its Midwest ethanol corridor, which will expand the availability of ethanol in Illinois and Missouri by about one-third.

"Ethanol is an innovative energy source straight from the heartland of America," said Bill Ford, Ford Motor Company’s chairman and CEO. "Ford is advancing innovative solutions to customer concerns over high gas prices and America’s overdependence on foreign oil."

Ford is not alone in its efforts to boost the popularity, visibility and availability of E85, a fuel blend that contains 85 percent ethanol and 15 percent gasoline. The company is teaming with energy partners such as VeraSun Energy and other private companies; the public; and city and state governments to expand hybrids and vehicles capable of running on E85 ethanol.

"With its commitment to ethanol and E85, Ford is showing the kind of renewable energy vision that Illinois and America need," said Illinois Gov. Rod R. Blagojevich. "With the Illinois Clean Energy Infrastructure Program, we have increased the number of E85 stations in Illinois from 14 to about 100."

Approximately 500 of the more than 180,000 fuel stations in the United States currently offer E85. The first phase in the creation of the Midwest ethanol corridor is to convert about 40 gasoline fuel pumps in Illinois and Missouri to E85.

Ford's commitment to ethanol dates back to the early 1900s, when the Model T was built to be flex-fuel capable.

Support is also coming directly from the White House. Recently, President George Bush traveled the country to discuss his energy policy initiatives in hopes of moving the nation toward energy independence by increasing research on clean and renewable energy such as ethanol. The president’s goal is to replace 75 percent of America’s oil imports from the Middle East by 2025 and make ethanol cost-competitive by 2012. If just 5 percent of U.S. vehicles were powered by E85 hybrids, imports of oil could be reduced by about 140 million barrels a year.

Ford is one of the few manufacturers delivering a comprehensive approach to providing consumers with alternative energy solutions — from leadership in hybrids to clean-diesel and partial-zero-emission vehicles. Ford has sought to leverage the benefits of ethanol dating back to the early 1900s, when the Model T was built to be flex-fuel capable. Since then, the company has committed to research in this area, and in 1986, Ford built the first fleet of flexible-fuel vehicles for use in the United States and Canada, primarily to run on methanol and gasoline.

Production expanded over the years to include additional vehicles as popularity of the technology grew. Today, more than 1.6 million flexible-fuel Ford vehicles are on the road. With the introduction of four new 2006 models that have the E85 option, the company will produce up to 250,000 ethanol-capable vehicles by the end of 2006.

Among the most popular of Ford’s environment-friendly vehicle offerings has been the two-wheel-drive Ford Escape Hybrid, which recently was rated by automotive research firm IntelliChoice.com as the "Best SUV Value Under $28,000."

"The Ford Escape Hybrid is among the vehicles we found to be a great economic bonus for consumers," said James Bell, publisher of IntelliChoice.com.

In addition to E85’s positive impact on consumers’ wallets and the environment, increasing its use also pumps money into the economy and creates jobs in America. Corn grown in Illinois is used to produce about 40 percent of the country’s ethanol. The Illinois Corn Growers Association has reported that investment by the ethanol industry in the state already exceeds $1 billion and is creating thousands of jobs for Americans.

To fully realize the potential of E85, Ford and VeraSun have partnered to increase consumer awareness of the fuel, particularly in the Midwest. The companies are investigating ways to inform owners of flexible-fuel vehicles about the benefits of ethanol, as well as where they can find E85.

"The two greatest challenges facing greater E85 use are access to convenient fueling locations and a lack of consumer awareness," said Bill Honneff, VeraSun’s vice president of sales and marketing. "Our partnership with Ford addresses these two issues."

Consumers who want to learn more about the benefits of E85 use and to find E85 stations can visit www.E85fuel.com.